The economic recession and recent price fluctuations in precious gemstone and precious metal prices have caused a stir in the diamond and precious metal markets. During the first half of the year it was reported that rough and polished diamond prices were at an all time high (polished diamond prices having increased by twenty to thirty percent from last year’s price projections, and rough diamonds having increased an astonishing fifty percent). Despite marked increases in diamond prices, diamond retailers are now reporting that customer demand for polished diamonds has notably increased from the first half of the year.

The significant increase in rough and polished diamond prices is mainly due to the fact that, over the last couple of quarters, diamond miners and exporters have not been able to meet growing customer demand for these precious gemstones. With such high demand and with such low output, polished and rough diamond prices soared. As a result, diamond retailers the world over expressed their worry over future rough and polished diamond sales, claiming that soaring diamond prices coupled with the economic recession will deter customers from buying these precious gemstones.

Indeed, the diamond market experienced a setback in terms of rough and polished diamond sales as more and more customers opted for more cost efficient materials for their high-end pieces of jewelry. As a result, gold prices have risen exponentially over the last quarter as customer demand for this precious metal exceeded that of rough and polished diamonds. However, as gold prices rose, customer demand lessened, as was the case with rough and polished diamonds, resulting in a renewal in customer interest for loose diamonds and diamond set jewelry. Consequently, rough and polished diamond sales have been through the roof since last quarter, increasing by approximately fifteen percent.

On the other hand, diamond shoppers should be aware that experts firmly believe that next quarter will be marked by another significant increase in both rough and polished diamond prices due to recent economic fluctuations and uncertainties in Europe and in the United States. Customers who are looking to buy loose diamonds or diamond jewelry should take into consideration the pending increase in loose diamond prices and would probably do best to purchase their high-end, high quality loose diamonds or diamond set jewelry sometime during this quarter. As it stands, the price for a five carat, high quality diamond is approximately $150,000 dollars per carat.